China Polysilicon Market Remains Under Pressure As Supply Rises

China’s polysilicon market remained largely in a wait-and-see mode this week, with limited new transactions and stronger price resistance from major producers.

Prices Hold at RMB 40–43/kg

Polysilicon transaction prices were reported at around RMB 40–43/kg. Major producers are generally maintaining prices around full-cost levels, with no significant willingness to cut prices.

However, downstream demand remains weak. New contracts are limited, while most previous long-term contracts have already been fulfilled. Some transactions are being completed through distribution, processing and futures warehouse receipt arrangements, leaving relatively little material in the open market.

Production Continues to Increase

China had nine polysilicon producers in operation this week. August output reached approximately 118,900 tonnes, up 13.1% month-on-month.

Production is expected to rise further in September, with estimated output of around 124,000 tonnes, an increase of about 4.4% from August.

Supply-Demand Imbalance Persists

With production recovering while downstream demand remains soft, inventory pressure continues to build. The market is still in a transition period, and the rebuilding of a sustainable pricing system will likely take time.

Market participants will be watching production cuts, the recovery of seasonal demand and inventory destocking for signs of a more stable price trend.